Association of Employers of FBiH: Profits of Public Enterprises and Clearing Debt to be Invested in Road Construction

The Association of Employers of the Federation of Bosnia and Herzegovina welcomes the initiative of the Government of the Federation of BiH to direct funds from the accumulated profits of public enterprises and from the clearing debt of the Russian Federation towards the realization of infrastructure projects, it was announced from the Association. 

“The funds obtained from the collection of the clearing debt are the result of economic activities of companies from Bosnia and Herzegovina realized before the war in the market of the then Soviet Union. Therefore, the initiative of the Government of FBiH to return these funds to the BiH economy through infrastructure projects is just, as it will enable economic development, strengthening of companies in FBiH, opening of new jobs, which automatically leads to a significant inflow of funds into budgets and extra-budgetary funds at all levels,” says Adnan Smailbegović, president of the Association of Employers of FBiH. 

We remind that the Association of Employers of FBiH reacted sharply in August this year to the announcements of certain members of the Government of FBiH that the funds obtained from the collection of clearing debt from Russia, in the part belonging to FBiH, should be used to patch budget holes, cover the PIO/MIO Fund, and social benefits.

At its session held on September 21, 2017, the Government of FBiH supported the initiative of the Federal Ministry of Transport and Communications to direct funds from the accumulated profits of public enterprises and from the clearing debt of the Russian Federation towards the realization of infrastructure projects. 

Priority projects include the construction of the Lašva - Nević polje expressway, the road connection between Sarajevo and Goražde, the Mostar Jug - Mostar Sjever bypass, the First Transversal city road in Sarajevo, and the Žepče - Tuzla highway.

Total investments of 290 million KM are planned, of which 107 million KM is from the clearing debt, and the remainder is from the accumulated profits of BH Telecom, JP EP HZ HB, JP Međunarodni aerodrom Sarajevo, and JP EP BiH.

“We hereby call on the representatives and delegates in the Parliament of the Federation of BiH to support the initiative of the Government of the Federation of BiH, which represents a significant financial injection for the economy of FBiH and which will undoubtedly produce positive effects for businessmen, as well as for all citizens of FBiH,” emphasized Smailbegović.